Kharkiv Tractor To Increase Output By 62% In 2005.

In Jan-July the company produced 1,772 tractors reaching 3,500. Early in 2005 Ukrsibbank increased its holding in the company from 22.5% to 64.5%, and changed the management team. Russia is the main buyer of the plant?s tractors. During the first six months of 2005 Kharkiv Tractor delivered 670 tractors to Rosagroleasing (Russia). This year the company plans to sell all the tractors produced plus 526 machines in inventory to reach net income of USD 4.2-4.6 mln ? a significant increase compared to loss of USD 9.8 mln loss in 2004. In 2006 Kharkiv Tractor plans to increase output to 6,000 machines. The company has started modernizing its infrastructure, including water delivery and autonomous heating systems, hoping that spending ~USD 6 mln for this purpose will allow it to save on production costs in future. The modernization of its casting workshop and mechanoprocessing equipment is planned for 2006.